How to adjust short payment received from customer with discount amount and remove from overdue list of invoices
Hi there, nirpinder.
You need to record the short payments as bad debt and write them off. This will remove the transaction from the list of overdue invoices. First, check for other invoices considered as bad debt through the A/R Ageing report.
1. Click Reports at the left panel.
2. Select the search icon and type Accounts Receivable Ageing Detail.
3. Check which outstanding accounts receivable should be written off.
Once done, create a bad debts expense account. Please follow the steps below.
1. Click the Gear icon at the top right. Then, choose Charts of Accounts.
2. Select the New button to create new account.
3. Choose Expenses from the Account Type drop-down.
4. Select Bad debts in the Detail Type drop-down list.
5. Type “Bad debts.” in the Name field.
6. Hit the Save and close button.
After that, you'll need to create a bad debt item under Non-inventory. To do that, you can check this article: Write off bad debt in QuickBooks Online. This article also provides steps and information to finish the process.